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Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF APPLIED BUSINESS AND ECONOMICS


Cost Stickiness and Management’s Issuance of Earnings Forecasts


Author(s): Jing Dai, Rong Huang, Yan Yan

Citation: Jing Dai, Rong Huang, Yan Yan, (2018) "Cost Stickiness and Management’s Issuance of Earnings Forecasts"," Journal of Applied Business and Economics, Vol. 20, Iss.6,  pp. 40-56

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This study investigates how firms’ asymmetric cost behavior affects managers’ decision to issue earnings forecasts. Cost stickiness reflects managers’ deliberate resource adjustment decisions and increases information asymmetry between managers and corporate outsiders. Therefore, as cost stickiness increases, managers are more likely to convey their private information to public through earnings forecasts to reduce information asymmetry. Consistent with our prediction, we find a positive association between cost stickiness and managers’ propensity to issue earnings forecasts, and this positive association is more pronounced for long-horizon forecasts than short-horizon forecasts.